Fond du Lac real estate remains a favorite product this summer in a record year for residential sales.
Less housing is available in and around the city and more people are looking to buy, driving up prices. Many offers to buy are in the tens of thousands of dollars above the asking price, according to the city’s appraiser office.
In May alone, the bureau recorded 120 real estate transfers, up from 87 in the same month last year. Until May of this year, 525 real estate transfers were carried out compared to 485 during the same period in 2020.
In his two decades of working in the industry, Kevin Jones, co-owner of Adashun Jones Real Estate, said he’s never seen anything like the market today.
“We are seeing several offers and opportunities for sellers to choose the offer that presents the best result for their quick and transparent sales goals,” Jones said. “Often, sellers give each buyer the opportunity to do their best to buy the property by bidding more for the home they want and reducing the number of contingencies in their offer. “
On average, Adashun Jones currently sees three accepted offers on properties each day and homes sell out in a matter of weeks.
Buyers who have missed a property purchase due to bidding wars learn they must do their homework before proceeding with a purchase, Jones said. Record interest rates are prompting buyers to move quickly to get the property they want, with 30-year fixed-rate mortgages plunging to 2.96% in May.
According to the Wisconsin Realtor’s Association, existing home sales and median prices rose double-digit margins in May from their levels 12 months earlier when the economy was stuck.
Over the past 15 years, the local real estate market has saw a constant increase in sales from its low point in 2009, when just 175 homes sold that year, according to WRA data. During this period, 2017 posted the highest number of home sales at 1,479, up slightly from last year when 1,443 homes were sold in Fond du Lac County.
Locally, home prices continue to rise by around 10 to 15%, Jones said. WRA records show that the median price of homes in Fond du Lac was around $ 159,000 last year. This year, so far, the average has hovered around $ 170,000, with the median home price in May reaching $ 187,500.
“It’s a market where everyone can win”
The hot sellers market is not so much due to a housing shortage, according to Jones, but to the pace at which deals are going. Buyers and sellers move faster than inventory can accumulate.
“It’s more of a perception than reality because everything sells out so fast,” he said. “Yet it is a market where everyone wins because buyers get a historically low interest rate locked in on a long-term investment.”
On Wednesday, Zillow, a website that aggregates real estate listings from several realtors and sellers, posted about 50 real estate listings in the town of Fond du Lac, priced from around $ 74,000 to $ 500,000.
As for buyers, Jones said he’s seeing more relocations to the Fond du Lac area from other cities and states than ever before, mostly due to job offshoring. The possibility of working from home or remotely opens up more possibilities.
“We have a beautiful area with a lot to offer in terms of Lake Winnebago, recreational activities and being centrally located,” Jones said. “It’s a quick commute to see the Bucks, Badgers, Brewers or Packers without as much traffic and noise as some big cities.”
The second home market on Lake Winnebago has also been better than ever, he said, with more lakeside homes sold to local and overseas buyers.
“People are in a stronger position to afford a home after maybe waiting a few years to buy,” Jones said. “The increased demand for housing drives up rental rates, which in turn prompts more people to look for housing of their own. “
Many home sellers are baby boomers who are starting to move out of their homes, where they have stayed longer in recent years. The low refinance rates have made them more affordable to stay in their homes.
“This is one of the reasons we are seeing an increase in condominium purchases – they are transitioning due to ease of maintenance and condos tend to be the right size for a couple looking to downsize, ”Jones said.
Evaluators take care of the paperwork
When the real estate market recovered around May 2020, the need for valuations also increased, said Frank Adashun, another co-owner of the company. Today they are at historic levels due to the high volume of real estate transactions, refinancing and quick turnaround times.
According to local lenders, a 45-day turnaround time is normal, in part due to the limited number of certified and licensed appraisers who cover Fond du Lac and surrounding areas, said Adashun, who spent late nights at try to keep on top.
Often, lenders and other clients will offer a “rush” fee to put their appraisal request ahead of others in the pipeline.
Government regulations after the 2008 stock market crash made it extremely difficult for new people to enter the field of valuation, he says. Currently, over 50% of reviewers are over 50 years old.
As a result, evaluation fees have increased significantly over the past two years. Typically, fees range from $ 450 to $ 1,500 for a single family appraisal report.
“Valuation has become quite difficult in recent months due to the demands, combined with the fact that many properties are selling for thousands above the list price. ” he said. “I was involved in a recent transaction in the Fond du Lac area where the sale price was $ 75,000 above the original asking price.”
The real estate company is also having a record year in selling custom homes, with more than 20 homes built and around 12 million new build volumes.
The housing shortage is not going to last forever, Jones said. The market continues to evolve, so you never get bored in the real estate world.
“It can be difficult when there are multiple offers coming in on a property. Jones said. “Ultimately this reflects a stable market, with buyers happy to find a place to live and sellers happy with the prices they are getting.”
Contact Sharon Roznik at 920-907-7936 or [email protected] Follow her on Facebook at facebook.com/reporterroz/